A Balanced Scorecard is a framework that focuses on shareholder, customer, internal and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives/projects which collectively describe the strategy of an organization and how that strategy can be achieved.
The implementation of corporate strategy has always been a significant challenge for most organizations. Research conducted at the Harvard Business School found that less than one in ten companies that formulate strategy could effectively implement it. Hence the Balanced Scorecard was created. Since 1992 the Balanced Scorecard has been recognized as one of the most innovative management tools of the century.
Challenges in Implementing the Scorecard
The critical challenges in the implementation of Balanced Scorecard include:
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| Executive Leader Sponsorship and Commitment
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| Management Understanding of how to use the tool.
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| Resource Commitment
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| Regular reporting of the scorecard
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| Data analysis and regular update
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| Making it a part of Senior Management communications.
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